Full Title: Senate Finance Committee Modifies Clean Energy Tax Proposals in Build Back Better Reconciliation Bill
Author(s): Vinson & Elkins
Publisher(s): Vinson & Elkins
Publication Date: December 13, 2021
Full Text: Download Resource
Description (excerpt):
Early on December 11, 2021, the Senate Finance Committee released its version of the Build Back Better Act (the “Act”). While the Senate Finance Committee version of the Act largely replicates the clean energy proposals included in the version of the Act the House passed on November 19, 2021, it does include a few substantive revisions along with clean-up changes to the legislative text. If the Senate passes the Act, as revised by the Senate Finance Committee, the revised legislation will need to be approved by the House.
The Act would also extend and enhance the carbon sequestration tax credit, create a new tax credit for hydrogen production, and add a “direct pay” option for certain tax credits. In addition, the Act would expand the definition of “qualifying income” for purposes of the publicly traded partnership rules to include income derived from various renewable energy activities. The Act also includes a provision imposing a corporate minimum tax (generally equal to 15% of a corporation’s book income)—however, certain renewable credits would be available to offset this minimum tax.
The following are changes proposed by the Senate Finance Committee to the clean energy proposals included in the House version of the Act.